IN FOCUS6-8 min read
Schroders Credit Lens November 2025: your go-to guide to global credit markets
Starting gun fired for big tech’s capex borrowing spree
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Links to all three versions of the Credit Lens are provided below and at the bottom of the page.
- Big tech has ramped up borrowing to finance capex (slide 4).
- Expect this re-leveraging cycle to continue but:
- their starting credit fundamentals are strong
- these issuers are a relatively small part of the index at present
- past episodes highlight that building of fundamental fragility can take time (slides 4-6)
- Credit spreads are expensive across the board, even after some slight widening in the past month (slides 7, 26).
- Investment grade (IG) spreads only need to rise ~10-15 basis points over the next 12 months to wipe out the current spread and leave them underperforming government bonds (slide 8)
- EUR and GBP bonds continue to offer a yield pickup over USD bonds on a fx-hedged basis (slide 9)
Charts of the month
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